Financial Market: main news from 20 to 24/04
1. CMN issues resolution on the derivatives market and bans contracts linked to events without an economic or financial benchmark
On Friday (24), CMN Resolution No. 5,298 was published, establishing rules on the organization and functioning of the derivatives market in Brazil. The regulation sets out minimum principles to be observed by market participants, including investor protection, transparency, integrity, efficiency, prevention of regulatory arbitrage, and the promotion of innovation. Its main provision is the prohibition of the offering and trading, in Brazil, of derivatives linked to sports events, online gaming, or events of a political, electoral, social, cultural, entertainment or any other nature that, at the discretion of the Brazilian Securities and Exchange Commission (CVM), do not constitute an economic or financial benchmark. The restriction also applies to offers within Brazilian territory of derivatives traded abroad. The Resolution further grants the CVM authority to issue complementary regulations necessary for its implementation and will enter into force on May 4, 2026.
2. CMN strengthens rules applicable to the FGC and amends requirements on additional contributions and allocation of funds
At its meeting held on Thursday (23), the CMN approved Resolution No. 5,295, which amends the rules applicable to institutions associated with the Credit Guarantee Fund (FGC), adjusting the additional contribution and enhancing the conditions under which institutions must maintain amounts allocated exclusively to federal government bonds. One of the key features of the regulation is the introduction of the concept of Reference Assets, an indicator designed to reflect the quality, diversification, and transparency of an institution’s assets, providing that when the volume of funds raised with FGC coverage exceeds this indicator, the institution must gradually allocate part of these resources to federal government bonds. The measure seeks to mitigate moral hazard associated with excessive funding backed by the FGC guarantee and will enter into force on June 1, 2026.
3. Financial sector discusses creation of a forum for sharing information on cyber incidents
Amid a recent increase in cyber incidents involving financial institutions, discussions have intensified within the market regarding the creation of a mandatory industry forum for the analysis and sharing of information on cyberattacks and security failures. The proposal aims to enhance cooperation and transparency between regulators and market participants, allowing the causes and vulnerabilities identified in each incident to be discussed in a structured manner – similar to practices adopted in other critical sectors – with a view to preventing the recurrence of similar failures. Although the Central Bank has adopted measures to strengthen prudential requirements, cybersecurity policies, and controls over intermediary links in the system, there remains a perception that current mechanisms do not fully cover the market, particularly considering the entry of new participants without uniform minimum security standards. The issue has gained additional relevance following a recent cyberattack targeting customer accounts, reinforcing concerns over the increasing frequency and sophistication of such incidents in the financial system.
4. FSI publishes paper on cryptoasset service providers as financial intermediaries
On Thursday (23), the Financial Stability Institute (FSI), which operates within the Bank for International Settlements (BIS), published a paper on the expansion of cryptoasset service providers (CASPs) beyond their traditional roles as trading platforms and custodians. The paper notes that the largest platforms now offer products such as yield and earn programmes, secured and margin lending, derivatives, and token issuance, bringing them closer to functions traditionally performed by large financial institutions. According to the authors, these multifunction cryptoasset intermediaries (MCIs) may take on credit, liquidity, and maturity transformation risks without, in many jurisdictions, being subject to prudential safeguards equivalent to those applicable to traditional financial intermediaries. As a policy response, the paper discusses a combination of entity-based and activity-based regulation, as well as stronger cross-border supervisory cooperation.
Cryptoasset service providers as financial intermediaries: risks and policy approaches
5. MED 2.0 goes live in May and expands the tracing of funds diverted through Pix fraud
During the Conexão ABBaaS webinar held on Wednesday (22), the Central Bank of Brazil detailed the changes introduced by MED 2.0, which will become the sole flow for triggering Pix’s Special Return Mechanism (MED) as of May 11, with the permanent shutdown of the previous infringement notification endpoint. The new version is primarily aimed at enhancing the tracing of funds diverted through fraud, overcoming a key limitation of the original model, which was restricted to the first receiving account. Under the new flow, the payer’s payment service provider (PSP) initiates the value recovery process, while the Central Bank coordinates the issuance of notifications to the institutions along the likely path of the funds. The measure is intended to increase the effectiveness of blocking actions and raise the operational cost of fraud. The Central Bank also emphasized the importance of institutions timely completing the adaptation of their systems and conducting the tests made available since April 13 as a condition for the full implementation of the new flow.
